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Small and medium business | Business Central, N...

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Service Contract prepaid option - what for ?

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Posted on by Community Member

Hi,

can anyone explain with a real Customer case when and why and why not to use the option ?

what are the ledger generated during all the life cycle of this type of contract ?

I only found documentation for how to configure, but why and when doen't really exist.

thank you

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JAngle 152 on at

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It's being discussed in another thread: https://community.dynamics.com/business/f/dynamics-365-business-central-forum/395062/service-contract-prepaid-checkbox

Example would be my amazon prime account. I can prepay the year (full amount) and I get the service. I can pay month by month so full amount /12. The 1st one is prepaid in BC.

Ledger wise you have a sub ledger for the contract to keep tabs on billing. The rest is like a sales invoice credit the revenue account, VAT account and then debit the accounts receivable.

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